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Procept BioRobotics Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 25 February 2026: press release. Guidance figures: 1 lowered, 8 new. The quarter’s numbers.

Key takeaways

  • Quarterly revenue up 12%: The company reported fourth-quarter total revenue of $76.4 million, up 12% from $68.2 million a year earlier. Third-quarter revenue was $83.3 million. Source
  • Procedures reached quarterly high: U.S. procedures were approximately 12,200 in the quarter, up about 69%, the highest volume the company reported. Full-year procedures were 43.3 thousand against 27.7 thousand. Source
  • Quarterly gross margin fell to 61%: Fourth-quarter gross margin was 61% against 64%. Management attributed the decline to lower-than-expected U.S. consumable revenue and a one-time cost of a voluntary field action. Source
  • Quarterly operating expenses rose: Fourth-quarter operating expenses were $77.4 million against $63.4 million, reflecting commercial expansion, BPH platform innovation and Water IV Prostate Cancer trial funding. Source
  • Handpiece sales to track procedures: Handpiece units had historically exceeded procedure volumes by about 8% to 16%. Management now expects the two to be closely aligned, which reduced projected 2026 handpiece revenue. Source
  • Field inventory cut, incentives ended: Management reduced field inventory and ended end-of-quarter purchasing incentives, which it said led to a fourth-quarter revenue shortfall. Source
  • Commercial organization realigned: Management said it realigned the commercial organization, set up a dedicated launch team to reduce activation variability, and adopted a more disciplined handpiece pricing strategy. Source

“At the same time, we took meaningful steps to position the Company for its next phase of growth.”

Larry Wood, Chief Executive Officer

Guidance

AreaPeriodFigureAgainst last quarter
Revenue Sourcefull year 2026$390 million to $410 millionLowered from $410 to $430 million
U.S. procedure growth Sourcefull year 202639% to 48%New
Gross margin Sourcefull year 2026approximately 65%New
Operating expenses Sourcefull year 2026approximately $350 millionNew
Adjusted EBITDA loss Sourcefull year 2026$30 million to $17 millionNew
Net loss Sourcefull year 2026$(91,500) to $(78,500) thousandNew
Total procedures Sourcefirst quarter of 202612,000 to 12,800New
Total revenue Sourcefirst quarter of 2026$79 million to $82 millionNew
Handpiece price Sourcefull year 2026$3,500 per unitNew

What changed from last quarter

  • Guidance lowered: Full-year 2026 revenue guidance lowered from $410 to $430 million to $390 million to $410 million. Source
  • New guidance: Full-year 2026 U.S. procedure growth guidance of 39% to 48% given for the first time in these documents. Source
  • New guidance: Full-year 2026 gross margin, operating expense and adjusted EBITDA loss guidance given; the prior release gave revenue only. Source
  • New guidance: First-quarter 2026 procedure and revenue guidance given. Source
  • New: Handpiece unit sales and procedure volumes to be forecast in close alignment. Source
  • New: Commercial organization realigned, a dedicated launch team set up, and a handpiece pricing strategy adopted. Source
  • Ended: End-of-quarter purchasing incentives eliminated, and field inventory levels reduced. Source

Results and growth drivers

  • Quarterly revenue up 12%: The company reported fourth-quarter total revenue of $76.4 million, up 12% from $68.2 million a year earlier. Third-quarter revenue was $83.3 million. Source
  • Full-year revenue up 37%: Full-year 2025 revenue was $308.1 million, up 37%, driven by U.S. system placements and more handpieces sold. Source
  • Quarterly net loss widened: Fourth-quarter net loss was $29.8 million against $18.9 million a year earlier. Full-year net loss was $95.6 million against $91.4 million. Source
  • Loss per share narrowed for year: Net loss per share, basic and diluted, was $(0.53) for the quarter against $(0.35), and $(1.72) for the full year against $(1.75). Source
  • Adjusted EBITDA loss by period: Adjusted EBITDA loss was $19.0 million in the quarter against $10.3 million. The full-year loss was $50.2 million against $61.1 million. Source

Segments and regions

  • U.S. revenue up 10%: U.S. revenue was $66.6 million, up 10% from $60.4 million, primarily from higher handpiece revenue. Source
  • U.S. systems flat, consumables up: U.S. system revenue was $27.6 million, flat year over year. U.S. handpiece and consumable revenue rose 16% to $34.0 million. Source
  • International revenue up 25%: International revenue was $9.8 million, up 25% from $7.8 million. Full-year international revenue was $37.7 million against $24.0 million. Source
  • U.S. service revenue rose: U.S. service revenue was $5.0 million against $3.4 million a year earlier. Full-year U.S. service revenue was $17.7 million. Source

“We believe these actions are essential to our long-term goals of sustained high growth and establishing a favorable financial profile.”

Larry Wood, Chief Executive Officer

Installed base and procedures

  • Procedures reached quarterly high: U.S. procedures were approximately 12,200 in the quarter, up about 69%, the highest volume the company reported. Full-year procedures were 43.3 thousand against 27.7 thousand. Source
  • Handpieces sold up 7%: U.S. handpieces sold were approximately 9,400 in the quarter, up about 7% from the prior year period. Source
  • Handpiece price rose 5%: Handpiece average selling price rose 5% from the third quarter to $3,340. Source
  • U.S. install base reached 718: The U.S. install base was 718 systems at year-end, up 42% year over year, from 653 at September 30. Source
  • Systems placed rose for year: Fourth-quarter U.S. systems placed were 65, against 60 a year earlier. Full-year placements were 213 against 190. Source

Costs, margins and pricing

  • Quarterly gross margin fell to 61%: Fourth-quarter gross margin was 61% against 64%. Management attributed the decline to lower-than-expected U.S. consumable revenue and a one-time cost of a voluntary field action. Source
  • Full-year gross margin rose to 64%: Full-year gross margin was 64% against 61%, attributed to overhead absorption and U.S. handpiece mix. Source
  • Quarterly operating expenses rose: Fourth-quarter operating expenses were $77.4 million against $63.4 million, reflecting commercial expansion, BPH platform innovation and Water IV Prostate Cancer trial funding. Source
  • Full-year operating expenses up 28%: Full-year operating expenses were $300.1 million against $233.7 million, with added sales and marketing spend to expand the commercial organization a main driver. Source

“Furthermore, we successfully reduced field inventory levels and eliminated end-of-quarter purchasing incentives, which led to a fourth quarter revenue shortfall but improved handpiece average selling price by approximately 5%.”

Larry Wood, Chief Executive Officer

Demand and order book

  • Handpiece sales to track procedures: Handpiece units had historically exceeded procedure volumes by about 8% to 16%. Management now expects the two to be closely aligned, which reduced projected 2026 handpiece revenue. Source
  • Field inventory cut, incentives ended: Management reduced field inventory and ended end-of-quarter purchasing incentives, which it said led to a fourth-quarter revenue shortfall. Source
  • Deferred revenue increased: Deferred revenue was $13.0 million at December 31, 2025, against $10.7 million at September 30 and $9.6 million a year earlier. Source

Capital, cash and balance sheet

  • Cash position at $289.5 million: Cash, cash equivalents and restricted cash were $289.5 million at December 31, 2025, against $297.3 million at September 30. Source
  • Inventory higher than prior year: Balance sheet inventory was $70.7 million at December 31, 2025, against $56.2 million a year earlier and $66.7 million at September 30. Source
  • Long-term debt and receivables steady: Long-term debt was $51.6 million, against $51.5 million a year earlier. Accounts receivable, net was $83.5 million, unchanged from a year earlier. Source

Strategy, forecasting and leadership

  • Commercial organization realigned: Management said it realigned the commercial organization, set up a dedicated launch team to reduce activation variability, and adopted a more disciplined handpiece pricing strategy. Source
  • Forecasting approach changed for 2026: Management said its decision to forecast procedure and handpiece volumes closely together reduced the projected 2026 handpiece revenue guidance. Source
  • Sales force realignment disrupts near term: Management said short-term disruption from the sales force realignment was one factor behind the 2026 guidance reset. Source

Coming up, as management said on 25 February 2026

  • Investor Day in New York: The company will host an in-person investor day on February 26, 2026 at Nasdaq headquarters in New York, starting 8:00am Eastern, with a webcast and archived recording. Source

Figures management reported

FigureReported
U.S. procedures (Q4) Sourceapproximately 12,200
U.S. handpieces sold (Q4) Sourceapproximately 9,400
U.S. install base (year end) Source718 systems
U.S. systems placed (Q4) Source65
Handpiece average selling price (Q4) Source$3,340

Risks management discussed

  • Operational: Management cited short-term disruption from the sales force realignment as a factor in the 2026 guidance reset. Source
  • Demand: Fourth-quarter gross margin was affected by lower-than-expected U.S. consumable revenue. Source
  • Regulatory: A one-time cost tied to a voluntary field action also reduced fourth-quarter gross margin. Source
  • Operational: Management set up a dedicated launch team to reduce variability in customer system activation. Source

Earlier plans management reported on

  • Not stated: Management reset the 2026 revenue range from the earlier $410 to $430 million figure to $390 to $410 million. Source
  • Not stated: Management said it expects handpiece unit sales and procedure volumes to be closely aligned going forward. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.